Case Study: Marketing Analysis of Root & Cook Ltd - MKT 682

This case study analyzes Root & Cook Ltd, examining its current situation, internal and external audits, and marketing mix. The analysis includes an overview of the company's vision, values, and market characteristics. It also presents hypothesized recommendations, leverage ratios, and financial analysis, including profitability and debt-to-equity ratios. The case study explores the company's market expansion strategies, competitive advantages, and potential threats and opportunities. The analysis concludes with a summary of the company's performance and suggestions for improvement, drawing insights from Porter's forces and market dynamics to provide a comprehensive understanding of Root & Cook Ltd's marketing strategies and financial health.

Running head: MARKETING CASE ANALYSIS OF ROOT & COOK LTD 1
Marketing Case Root & Cook Ltd
Student
Institutional Affiliations
Course Date

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 2
Table of Contents
Case Summary.................................................................................................................................3
Current Situation..............................................................................................................................3
Internal Audit...................................................................................................................................4
Current External Audit.....................................................................................................................5
Current Marketing Mix....................................................................................................................7
Potential Situation............................................................................................................................7
Potential Market Characteristics......................................................................................................8
Hypothesized Recommendations.....................................................................................................9
Leverage Ratios Analysis................................................................................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
Case Analysis of Root & Cook Ltd

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 3
Case Summary
Unlike its competitors, Root & Cook Ltd (“RCL”) has a well-stipulated vision statement
for the company is detailed compared to that of its competitors. The vision of the company is
remaining focused on service delivery .The vision statement for the company also talks about the
values concerning the Root & Cook Ltd (“RCL”).
The company’s benefits include collaboration, product excellence, and simplicity. The
core values of the company include simplicity, and it forms part of the vision statement of the
company. The issue of innovation is associated with the company regarding company values and
the employees of the company at all levels in the organizational structure (Loomes, Hull &
Mandy, 2017). Through the mission statement, Apple Inc. seeks to market the products that it
produces on the aspect of both types as well as service offered by the products. In this case, the
consideration of technology is regarded to be appealing to most customers who prefer the
technological dynamics.
The company has a continued dedication to creating products that are ground breakings
as well as those that meet the demands of clients. The company needs to have a great team that
will help in coming with the ground more quality delivery. The company also has an objective of
innovating products that will offer a dictation on the future technology in the world.
Current Situation
RCL services as a segment help in the provision of smaller delivery services on the
ground via the principal Marriage system. The other services provided by the company are held
within the jurisdiction of the company line of business.
The company provides a wide range of services in line with hospitality and courier
services in countries of operation, for instance, Canada and USA. The company is also engaged

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 4
in marketing and sales of products for other companies. It provides sales and marketing services
on top of the information technology support services as well as customer support services.
There is the global supply service as well as the chain supply services (Maina & Sakwa, 2017).
The company capital structure in 2016 was approximated for USD 3.2 billion.
The future of RCL is tied in its consistency to serve its subscribers in the best way
possible. The company employment of technology in areas of management as well as sales and
marketing was stipulated in the company investment and planning portfolio for start of the 2017
last quarter of the financial year forms the company large percentage of its future plans. The
company plans to make an average substantive increase in its growth rate in business by 5% on
every financial year for the next decade. The company is also focused on making an increment
on its revenue through extensions of its services to uncharted frontier. The areas that are
earmarked by the company include the Middle East and the Sub-Saharan Africa and India. In
this regard, RCL wants to increase on its market coverage and increase on the sales revenue by a
consistent 8% averaging for every quarter of the subsequent fiscal years starting from the last
quarter of 2017.
The company seeks to improve on the reduction about the costs of operation by making
mergers in some locations across the globe for easy accessibility in the interior areas. This is
done through the incorporation of its services and products to some local firms. It is also going to
be achieved by liaising with the local firms through payment of commission as levies to the firms
upon transportation of their products.
Internal Audit
Thus total fixed costs for the month are $4,290,000. Fixed costs are expressed per period.
Fixed costs are as such treated separately from other costs based on how they emanate in the

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 5
process of costing for the various causes of expenses in a firm (Bellos, Tzivanidis, Symeou &
Antonopoulos, 2017). All activities about company operations are associated with costs that
should be catered for in the event of accounting.
The company seeks to increase its current ratio to the targeted 2.0 from the current 1.5
as calculated from the company financial data in 2016 all through to 2017. It would mean an
increase in the company cash inflows and control of the outflows through proper management of
short-term assets of the firm.
A firm that attains the breakeven period before starting to realize the initial capital
invested in the business and is keen on not making additional losses should close its operation
immediately after attaining the breakeven period. Breakeven point by definition is the time at
which a business can no longer operate if it has so far failed to realize the total am out of capital
initially invested in the business.
Current External Audit
Payback period would be calculated from the following tables of figures as set out from the
given data.
Initial investment 1000000
Sales Revenue per month 200000
yearly sales 2400000
1st Year 2nd year 3rd year 4th year 5th year
Sales 2880000 $3,120,000.00 3120000 2880000 2640000
Less:Cost of slaes 1728000 $1,560,000.00 1560000 1440000 1320000
Cash flows 1152000 $1,560,000.00 1560000 1440000 1320000

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 6
The first step is revenue calculation as the revenue that is provided by the RCL is
underpinning revenue in this particular project which is equivalent to 200,000 per month at the
current exchange rate. The calculation done for revenue is therefore is.
A$200,000*12 months= A$2,400,000 +Additional food, processing and packaging
The additional food processing and packaging is due to RCL new equipment. The addition shall
be added to on the sales growth rate per year with a given percentage.
It is then assumed that the revenue and additional growth is added after every financial year.
After the calculation of the revenue, cost is calculated using this equation
Cost= cost percentage *Revenue* (-1) e.g.
Cost= 56,848,000*60 %*(-1) =-VD34, 108,992,000
Note: All calculations are in pounds
The cost for first year is 60% of the revenue of the same year and for the subsequent years the
cost is 50% of their respective revenues. Residual value is added at the fifth year as a positive
value rather than a negative.
The cash flow is calculated by subtracting the revenue of each year and the subsequent value of
the total cost. Then all the cash flow is summed up to form the Net cash flow.

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 7
Current Marketing Mix
The business strategy for Root & Cook Ltd is to target the establishment of a
differentiation strategy and a market expansion strategy that is aimed at giving the company a
competitive advantage (Bruix, Cheng, Meinhardt, Nakajima, De Sanctis & Llovet, 2017).The
differentiation in the company is done by the company coming up with different products that
can be used by people from different localities and of a diverse age group. Product differentiation
provides competitive benefits for many manufacturers (Axelrod et al., 2017). A company should
always aim at creating divergence in the products that they manufacture. Apple Inc. is using the
strategy, and that has resulted in the development of a competitive advantage for the company.
The issue of expansion has been embarked by the excellent reputation that is associated
with the company products. Apple Inc. has managed to penetrate different markets, and that has
led to increased profit levels for the company.
Potential Situation
Based on porter’s forces, there are different factors that affect Root & Cook Ltd and arise
from the industry. The industry is associated with substitute goods. The existence of substitute
means that the sales revenue of the company will reduce. The company is also found in a free
market whereby there is allowance free entry and exit. There are numerous new entrants in the
industry, and that has led to increased competition for the company (Bruix, Cheng, Meinhardt,
Nakajima, De Sanctis & Llovet, 2017). The only barrier to entry in the industry is the fact that
the industry is associated with high costs of starting up the business. There is also the
competition that arises from the existing customers.
The company is optimally in operation at the stock exchange market following the
performance of other firms of its level and that of competitors. In an attempt for Corporation to

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 8
make a relatively larger share of the market, the company underprices its shares and sells them as
a lump sum deposit.
The competitors to the company include other companies that distribute as well as offer
hospitality services, which is a large corporation that has the financial muscle to increase their
marketing skills in an attempt to increase market share. The supplier is bargaining power in the
market also serve as a considerable threat.
The technologically advanced products cannot be manufactured by any corporation hence
the number of suppliers in the industry is minimal. That implies that the suppliers have a better
bargaining chip over the companies and that will make them overprice their products. At the
same time, the customers’ bargaining power has depicted a substantial threat in the market. There
are many similar products in the product. That implies that the customers can negotiate for
cheaper products from the existing companies in the industry.
The organization encounters the weakness of high employee turnover. The technical
industry is associated with employee turnover that is high (Altman, Iwanicz, Laitinen & Suvas,
2017). This implies that the companies in the industry will incur many training and recruitment
costs for the new employees. The threats that exist in the entry include the fact that there can be
legislation that would be aimed at increasing taxation and that will reduce the margin for the
companies in the industry.
Potential Market Characteristics
The enterprise portfolio in as much as it takes into consideration the impact of the
government in business it is in no way guaranteed of stagnation to the set rules by the
same government. Independence for the business entity in decision making is more
important than total compliance to the government set policies that at some point operate

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 9
contrary to the success of the business. Machines may be used for production purposes but
they are also not required for full operation in the entire business activities as they may result
to unemployment to the population around and beyond Root & Cook Ltd .
Hypothesized Recommendations
The company should embark on research and development and at the same time
marketing. The technical department in charge of R and C ensure that the organization
establishes more modernized and innovative products with time. TQM (Total Quality
Management) would also be a great idea. This would enable the company to pay special attention
to the customer’s needs, design the product accordingly and have a steady and efficient
production process and equipment. The results will then be tracked and this very same concept
will be emphasized to the suppliers, so that they understand the main needs of the customers and
clients of the company they do business with, so they themselves understand the importance of
supplying first grade metals to their business partner.
Leverage Ratios Analysis
Net Profit Margin (NPM)
= (Net profit- cost of sales/ net profit) *100%
= (48,351,000/38,134,433.70) =21.13%
2017
Net Profit 48,351,000
Cost of
sales
38,134,433.70
NPM 21.13%

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 10
Return on Asset (ROA)
= Net Profit/ Total assets * 100%
= (48,351,000/ 443,994,490.40) =10.89%
2017
Net
Profit
48,351,000
Total
assets
443,994,490.40
ROA 10.89
Return on Equity (ROE)
= Net Profit/ equity * 100%
=48,351,000/ 130,431,616=37.07%
2017
Net
Profit
48,351,000
Total
equity
130,431,000
ROE 37.07
Debt-to-Equity Ratio
= Debt/ Equity

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 11
= 97,207,000/ 1,113,482=87.30
2017
Debt 97,207,000
Equity 130,431,000
Debt-
Equity
88.30
Asset Turnover ratio
2016 2017
229,234,000 Total sales 215,639,000
443,994,490.40 Total assets 375,319,000
51.6 ROA 57.5
The company has an overall upward trend in its profitability ratios right from the base
year to the target year. A look at the ratios provides an insight and a reason for potential
investors to invest in the company shares. There are possibilities of risks in the investment into
the company but based on the previous financial information provided, the company stands not
to make losses (Velásquez & Meunier, 2017). A decision by investors to venture in into buying
the company assets in terms of stocks and shareholding has less associated risks.
The company net cash flows as indicated in the table right from the base year are overall
increasing and in such cases, the company has chances of making improvement in future
business transactions (Deschamps & Nelson, 2014). The use cash flow ratios above provide
insight into the flow of cash in the firm making a good grounding for prediction of the company

MARKETING CASE ANALYSIS OF ROOT & COOK LTD 12
net cash flows for the next financial year.
Root & Cook Ltd overall Beta Value from 2014 all through to 2016 is recorded for 2.05.
The figure is reached at after the estimation of the market risk and risk-free rate and risk
premiums of US National Stock Exchange rates (Deschamps & Nelson, B.2014). The annual
dividend yield for the company is calculated to be at 0.90 with a net dividend of 0.55 estimated
for an average of the three consecutive years. Walgreens however, should work on minimization
of costs and in the event of investment risk aversion should be a priority.
Conclusion
Root & Cook Ltd being a business that has kept an eye on making profits and if there is
anything to go by make it in as growth is concerned, should put the following in consideration.
The management should see to it that there is limited overtrading and maintenance of the
current marketing strategies is given a priority. The business comparative advantage should be
kept up to date and nothing in particular should be embraced at the expense of the already placed
strategies.
This technique also emphasizes on a lot of team work between the employees and at the
end, major customer satisfaction. The marketing investment will ensure that the firm will be in a
position to increase their sales income; as a result, this will actuate the motivation level for both
leadership management as well as the workforce of the company.
The company cash flow is another concern. The accounting team in collaboration with
the auditors should lias to ensure that there is consistency in the records as well as financial
management. Root & Cook Ltd however, should work on minimization of costs and in the event